Citigroup’ private bank has decided to pull its $187 million investment from SAC Capital Advisors LP, according to people familiar with the decision, the latest in a string of client defections that have occurred amid scrutiny of the hedge-fund firm. The decision “should not be construed as a statement on the merits of any outstanding legal proceedings or potential regulatory action” related to the scrutiny, a Citi spokeswoman said in a statement to The Wall Street Journal Thursday. Federal law-enforcement officials have sought to build an insider-trading case against SAC for years, but recent developments, including the arrest of Mathew Martoma, a one-time portfolio manager at an SAC unit, and the firm’s acknowledgement that it was notified by securities regulators it may soon face civil charges, have shaken some investors. “In the event these legal and regulatory matters are resolved favorably for Mr. Martoma and SAC, Citi Private Bank expects to reconsider admission of SAC’s funds to its hedge-fund platform,” the spokeswoman said in the statement, adding that the decision to redeem was made following the private bank’s standard procedures. [WSJ]
Things are not good when your new CEO’s priority number one is to “stop destroying our shareholders’ capital.” But The Wall Street Journal isn’t above kicking a bank when it’s down.
The latest weak point to be splashed on the cover of the C Section is Citi’s retail banking operation, which is still in the hands of one of Vikram Pandit’s cronies and which has the highest average deposits per branch of top lenders but which may or may not still keep track of customer accounts longhand. Plus, there’s this compelling anecdote in the lede: Read more »
Genius Mike Corbat. GENIUS. Read more »
Financial Services Employees To Spend The Month Of January Subsisting On Garlic-Oregano Shots And Self-LoathingBy Bess Levin
…a growing number of self-flagellating New Yorkers who treat — then beat — themselves post-holidays by temporarily giving up vices such as alcohol and sweets, sometimes replacing them with liquid diets (blue-green algae juice and garlic-oregano shots, among them). According to Denise Mari, owner of Organic Avenue, the uber-popular NYC-based juicing mecca, business has doubled year over year since 2006, with an explosion in volume in 2012. And there’s always a spike in sales this time of year with those desperate to cleanse away their sins. “People tend to go extreme — they need to be kicked in the ass,” says Danielle Pashko, a longtime NYC nutritionist who guides high-rollers from Citibank, J.P. Morgan and Merrill Lynch. “It’s kind of like a bipolar attitude — splurging with mayhem and nonstop debauchery for weeks, and then total self-deprivation.” “These people are highly successful, competitive and stressed out. They’re cosmopolitan and social and mostly men,” says Pashko…John Cholish may look like any other ripped stud to an outsider: The smoking-hot energy options broker who boasts 6 percent body fat could intimidate most superheroes. “I’ve always been competitive, and like to challenge myself,” says the 29-year-old from Long Island City who has detoxed regularly for more than a decade. But he’s no match for his 110-pound feather of a girlfriend, Brianna Cole, 24. “My girlfriend and I will do a little competition, but she tends to beat me; I’m probably 0 for 4,” he admits sheepishly of their fasts — during which they give up sugar, caffeine, alcohol and simple carbs for a minimum of several days. [NYP]
Contrary to popular belief, not all news is bad news at Citigroup. Yesterday 122 employees were named Managing Directors and while some might say that the only Wall Street promotion news worth reporting is that of Goldman Sachs, Citigroup is a real bank, too, so let’s all take a moment and give it up for them. It’s not as exciting as winning an iron-pumping sessions with Mike Corbat, but it’s something.
If This Credit Trading Thing Doesn’t Work Out, Citi Employees In London Have A Career In Gift Wrapping To Fall Back OnBy Bess Levin
Behold the amazing attention to detail that was brought to wrapping the desk of a colleague, who showed up late the day after group holiday party. The mouse! The stapler! The tight, clean corners on the monitors!